Redback Networks, Inc. (RBAK) Message Board

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Technology Stocks : Redback Networks, Inc. (RBAK)

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To: jcm who wrote (1551)	11/14/2000 1:24:34 PM
From: Techplayer	Read Replies (1) of 1956

12:48 ET Redback Ntwrks (RBAK) 68 11/16 -4 1/16: -- Update -- Taking a look at the issues raised in the 10Q, the first is that RBAK has a put/call option agreement with Merlin Systems, under which Redback could be required to purchase Merlin for between $40-718 mln. Greenberg reportedly questioned how Redback could afford this given its $55 mln cash position, but the 10Q clearly states that this would be a stock deal, not cash (note also that RBAK has $419 mln in short-term investments). Another point made was that RBAK sold some receivables, but it sold $5.413 mln in receivables for $5.174 mln in cash -- that appears to be more of a wise sale of risk rather than an indication of dubious accounts receivables. . 12:29 ET Redback Ntwrks (RBAK) 70 3/4 -2: Stock quickly reverses 8 points; talk on trading floors is that there are questions raised by its 10Q regarding an acquisition and a sale of receivables; TheStreet.com's Herb Greenberg apparently wrote about these issues earlier this morning.

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